The Hindu Business Line : Volkswagen puts car project in India on hold

The company, which has been hit by a bribery scandal, has however indicated its continued interest in the car project. It has decided to send its special envoy, former German Ambassador to India, Mr Frank Elbe, to Andhra Pradesh for discussions.

The Chief Executive Officer of Volkswagen, Mr Bernd Pischetsrieder, in a communication addressed to the Andhra Pradesh Chief Minister, Dr Y.S.Rajashekhara Reddy, has intimated that he would send the envoy to call on him and to finalise a suitable date for discussions.

In the letter dated July 26, the company CEO said, "We would like to inform you that due to the unexpected and unpleasant incidents in the recent past, the Volkswagen India project is only temporarily put on hold so that we confirm again our serious intention and strong interest in entering the Indian market."

The letter further said, "According to present findings, former Skoda Board member Dr Helmuth Schuster acted in India without authority and furthermore mislead the State of Andhra Pradesh. With respect to the payments to Vashishta Wahan arranged by the State of Andhra Pradesh, Volkswagen will assume responsibility for the damage caused by the suspected illegal dealings of Dr Helmuth Schuster."

The Volkswagen management further said that Mr Elbe would hold talks with the State Government officials before their visit to Germany.

Meanwhile, the former Chief Minister and TDP leader, Mr N. Chandrababu Naidu, who held a press conference here today, said that the Government should trace the recipients of the money deposited into the bogus special purpose vehicle created by the State.

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